Question

Question 27 (1 point)

Which of the following statements is true?

a	The standard of living in a country can be estimated using Real GDP per capita (per person)
b	By definition, Real GDP per capita = Real GDP / Population.
c	A key principle of economic growth is that in order to raise the standard of living of a country over time, an economy must devote some of its current output to increasing future output. This requires both saving and investment.
d	All of the above.
e	Only a) and b)

Question 28 (1 point)

Which of the following statements is true?

a	There is a trade-off between current and future consumption. For a country to consume more goods in the future, it must have to produce less consumption goods and produce more investment goods today.
b	More capital goods in today’s economy will help it produce more consumption goods in the future.
c	The economy saves when current consumption is greater than current output.
d	All of the above.
e	Only a) and b)

Question 29 (1 point)

Which of the following statements is true?

a	Households are the principal source of savings in the economy.
b	The economy invests when resources are devoted to increasing future output.
c	While banks and other financial institutions undertake economic investment by lending funds to firms, firms pursue financial investment when buying (new) factories, machinery and equipment.
d	All of the above.
e	Only a) and b)

Answer 1

Q27. Option d
Standard of living increases purchasing power which is represented by output per person. Economy must devote some fraction of current output to increase to increase future output

Q28. Option e
Economy must devote some fraction of current output to increase to increase future output
More capital goods refer to investment to increase future productivity

Q29. Option d
As households savings increases investment can be increased
Economy must devote some fraction of current output to increase to increase future output
Investment by firms refers to purchase of capital goods